Introduction
With the global demand for natural gas on the rise, the issue of securing stable supplies is
closely tied to gas reserves available and monetized. Russia is the world's largest holder,
producer and exporter of natural gas and Gazprom is its sole gas supplier to international
markets. Though, quite often opinions are aired as of recent that Russia cannot be counted on
in terms of sustainable gas exporter.
The study Natural Gas Production in Russia, the second product within Eurasian Gas Research
Service 2008, argues this standpoint giving a comprehensive analysis of the current status
and development prospects of Russia's gas industry up to 2020.
For the period of 2001-2007 gas production in Russia increased from 581.9 to 654 bcm,
primarily due to Gazprom's tapping new fields (including the start of commercial production
at Yuzhno-Russkoye field in December 2007). By 2020, Gazprom alone plans to produce 650-670
bcm per year. Additional production boost of 140-150 bcm by the same year is expected to come
from other gas producers, such as LUKOIL, Novatek, Rosneft, TNK-BP, etc.
Nevertheless, Russia's gas industry is confronted by substantial reserves depletion at
traditional fields with subsequent rise of gas recovery costs and by the necessity in huge
investments to develop new gas provinces. Actually, these issues lie at the root of
speculations about Russia's inability to meet gas export obligations.
Key issues Natural Gas Production in Russia addresses are:
* Evaluation of Russia's production potential to 2020
* Analysis of strategies of Russian gas producing companies
* Assessment of gas production capital expenditures needed to supply the growing gas demand
locally and on global markets
* Analysis of the most acceptable supply/demand scenarios
Apart from a comprehensive in-depth analysis of the gas industry in the country and
examination of production prospects at existing fields the study forecasts the implementation
of upstream strategies by Gazprom and other gas producing companies up to 2020.
Key questions addressed in the study:
* What was the dymanics of natural gas production in Russia for the period of 2000-2007?
* What is the legal and tax regulation of the Russian gas industry upstream segment?
* What is the production potential of Gazprom and "independent" gas producers at traditional
gas fields up to 2020?
* What is Gazprom's strategy with regard to independent producers?
* What are the opportunities for Russian gas producing companies to sustain and increase
current production rates?
* What capital expenditures are needed for further development of natural gas upstream
segment?
* What is the price of natural gas coming from different fields at the Russian border and
could be there any price fluctuations?
* What factors could influence natural gas production in Russia?
Natural Gas Production in Russia examines current status and prospects of gas production by
Gazprom's 17 subsidiaries, affiliated companies and 6 independent gas producers.
The study is unique in providing a cost-plus assessment of supplies from a field to the
Russian border for major Russian gas assets forecasted to 2020. Combined with the netbacks
for 42 importing countries to the Russian border to 2020 forecasted in the study Russian Gas
on Global Markets: Potential, Strategies and Outlook, it completes the picture of Russia's gas supplies competitive ability on global markets.
Key data in each producing company profile covers:
* Current resource base
* Production dynamics
* Transportation routes of gas produced
* Production potential to 2020
* Volumes of capital expenditures for further development
* Cost plus assessment from a field to the current and/or potential exit points at the
Russian border (for major assets only)
Similarly structured is the examination of new gas fields and provinces:
* Yamal Peninsula (Bovanenkovskoye and Kharasaveiskoye fields)
* Shtokmanovskoye gas field development
* Ob-Taz Bay fields
* Eastern Siberia fields
* Russian Far East fields (including Sakhalin Island)
Cost plus assessments for some of these regions are made for the first time.
Natural Gas Production in Russia develops two scenarios for gas production in Russia in
2008-2020 based on:
* Demand for natural gas in Europe, CIS, North-East Asia, North America
* Gazprom's contracted and supplied export volumes, current and projected
* Projected gas prices on export markets
* Economic feasibility of developing new fields
* Transportation capability for delivering gas from a field to local and international
consumers
* Gas producers' plans for tapping new fields
The scenarios also take into account forecasts of gas production capital expenditures by
Gazprom and other producing companies.
The following sections of the study could be ordered separately (hard copy and print-out
protected CD):
* Chapters 1 and 2: Current state of natural gas production in Russia and state policy-260
USD
* Chapter 3 : Current and prospective production in Gazprom's existing fields-5,850 USD
* Chapter 4: Independent gas producers-3,250 USD
* Chapter 5: Promising regions in terms of long-term gas production development until
2020-2,600 USD
* Chapters 6 and 7: Factors influencing gas production growth in Russia and production
scenarios to 2020-3,900 USD
Natural Gas Production in Russia is an essential analytical support tool for:
* energy policy-makers
* gas companies, partners of Gazprom
* gas producers
* gas transportation and trading companies
* financial and investment institutions
* contractors and equipment suppliers
